Dictionary of Banking Terms: runoff
runoff
- reduction of a loan portfolio as loans are paid off at scheduled maturity dates, or when borrowers prepay their loans. Loan portfolio runoffs accelerate when interest rates are declining, and borrowers refinance at lower rates.
- early withdrawal of savings account or time deposit balances. When depositors take their funds out of depository institutions to put their money in direct investments, such as stocks, bonds, or mutual funds, the outflow of funds from banking institutions is known as disintermediation.
Dictionary of Finance and Investment Terms: runoff
runoff
printing of an exchange's closing prices on a ticker tape after the market has closed. The runoff may take a long time when trading has been very heavy and the tape has fallen far behind the action.
